The Market Opportunity

In Brief

We believe the current real estate equity and debt markets create a window of opportunity for buyers of single tenant, net leased real estate. The lack of liquidity and the stress in the market caused by falling rents, reduced occupancies, and expanding capitalization rates have resulted in lower asset prices. Moreover, the dislocation of the capital markets and real estate markets has further re-priced real estate equities in favor of the purchaser. We intend to take advantage of this buyers’ market, which we believe will extend through our offering period.

We believe that American corporations, seeking to reduce the costs of distributing their goods and services, are beginning to re-evaluate retail-facing distribution and supply chain management. We believe this has led to an increased need for well-located real estate, from which corporations may cost-efficiently sell their goods and services to the consumer and aggregate from suppliers and redistribute to their regional retail stores.

There is no guarantee that these market conditions will continue.